There are significant flaws in the new Law on Advertising, AmCham Moldova asks for its amendment.
The American Chamber of Commerce in Moldova (AmCham Moldova) has asked the authorities to revise the Law on Advertising, which came into force on January 8, 2023. Despite many provisions contributing to the development of the advertising market, the application of the law has revealed shortcomings for businesses: inflated rates of local fees for advertising devices, long waiting times for these permits, the practice of refusals to issue permits, etc. AmCham notes that the object of the tax on advertising device is its surface on which outdoor advertising is placed, but practice shows that the rate of such tax in some localities is greatly inflated. For example, in Chisinau municipality the annual fee is 815 lei/sq m, in Balti - 650-1100 lei/sq m, depending on the zone, in Cahul - 500 lei/sq m, in Calarasi - 900 lei/sq m, in Ungheni - 250 lei/sq m. At the same time, in Durlesti the fee rate is 10 thousand lei. Amcham believes that such practice should be closely monitored for legality, given the provision of the Tax Code that regulates compliance with the principle of predictability and proportionality in establishing local tax rates. Another controversial regulation relates to over-regulation. According to the new law, signs larger than 1 square meter are now considered outdoor advertising and require an authorization for an advertising device, while any other images or inscriptions placed on commercial or business premises, except for signs and shop windows, are considered advertising and must also receive authorization. At the same time, the Law on Entrepreneurship and Enterprises requires legal entities to post signs on all buildings where they operate, while it is prohibited to post signs on historic monuments and monuments of national or local importance.
For example, the historic center of Chisinau falls under this provision of the law (the space within the following streets is considered an integral monument protected by the state: Alexei Mateevici - Mihai Viteazul - Ivan Zaikin - Albisoara - Ismail - Stefan cel Mare - Ciuflea). The law on the protection of monuments obliges local authorities to issue a permit for intervention works on monuments and immovable property located in their protection zones, in accordance with the opinion of the Ministry of Culture. AmCham believes that in the historic center, signs larger than 1 square meter can fit into the architectural style of the building, providing local budgets local taxes, and these rules of law are redundant. A separate restriction is the regulation of advertising on vehicles: unlike the last law, today the permit must be issued by both the police and local authorities, but the mayor's office refuses to issue a permit due to the lack of appropriate regulations. Also AmCham believes that it is necessary to review the system of taxation of advertising on vehicles, etc. The association is in favor of a dialogue with the authorities to support the dialogue and resolution of all these problems. //27.03.2023 - InfoMarket.
